hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you money. my job not just to entertain you but educate you so call me at 1-800-743-cnbc. look, if your estimates are cut lower, if the expectations are dim enough, then your stock can rally. even slightly or convincingly, which is what happened with

apple tonight, and what's been happening with this market for most of 2013 with today being still one more day that the market put on a terrific, better than expected show, the dow rallying 152 points, s&p rose 1.04%, nasdaq gaining 11%. tuesday is up day around here, 15. straight one. i can give you the basics on this apple. apple earned $10.09 versus the $10 that people expected. the dividend has been boosted nicely, 15%, or that the company boosted the buyback from $10 billion to $60 billion and expect the buyback to be complete by next year. that's accelerated. apple tends to use its balance sheet to borrow, help buy the stock. it seems silly with $144 billion in cash but remember, a lot of it is overseas, so frankly, as far as i'm concerned, it's good. but here's what really matters. just as apple was totally loved at the top, it was scorned at the bottom. and that's pretty much a microcosm of so many other

stocks, whether it be yum, kfc, which respected reported a good number tonight after merrill lynch cut the stock to a sell and therefore soared on the back of that negativity which was wrong. or broadcom, the chip maker, which came back to life tonight because it beat the expectations after, well, beating them before but not by enough. or by caterpillar the day before which absolutely stunk up the joint with its earnings. but it simply wasn't so horrible that the stock could go down anymore. and instead of you turning bad news, it was down so long, it looked up to me. is this the beginning of apple's next big move up? not so fast. here's the good and bad news. there were three components to why apple fell so hard in these last few months. by the way, one of the worst -- top ten worst performers since the year began. the first had to do with an earnings progression that was one of the worst out there, with three missed quarters and a host of questions about slowing growth. tim cook, the ceo, made it

abundantly clear that both growth and gross margins are slowing. obviously, that's disappointing. but when everyone is looking for a disappointment like with yum or caterpillar, you can do a lot of disappointing and still have your stock do a little bounce. and apple is doing that. second, apple seemed to spurn the social compact that so many companies have sought to develop with their shareholders, including kimberly-clark. they didn't seem to be inclined to boost the dividend any aggressive way. they seemed reluctant to recognize that they had more cash than they needed and the excess cash belongs to the shareholders which is what the great companies are doing right now. now, this dividend boost brought the stock up to the hallowed 3% yield that has attracted many. the decision to return more capital via the buyback than anyone i know working for is quite frankly terrific. both should create a floor for the stock that's not much different from the floor that

many other 3% yielders have. hey, listen, what can i tell you, it's still just a stock. but it's the third reason that the stock's been going down that worries me and is why i think you're not going to see it up huge tomorrow. the lack of innovation. yes. it is true, as cook said, that the iphone and ipad continue to have strong performance, even though the mac wasn't so good. but everyone knew mac wasn't so good. kind of surprising the iphone wasn't as good as it was. but the strong performance that cook alludes to is regarded as no longer enough to propel this stock higher. what we need to see are new products that knock our socks off, and aren't just incremental twists on older models. now, we did get a tease here when cook said, and i quote, our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline, end quote. hey, terrific. show us the money!

it's not enough. it's not enough anymore. it's not enough, because there's an overwhelming sense that apple has become a number two, and that incremental earnings growth from the ipad and iphone are not enough to get the stock to go back to where it was or even to the $500s. samsung right now perceived the winner until you show us the product. now we know that there were analysts that had gotten too negative on the stock and they will have to change their tune. they will have to update their numbers and raise them because of the buyback, because there will be fewer shares. remember, that's the dividend, the divisor. there will be others who realize apple below 390 or 380 where it might have been had they not announced anything else but their earnings, that might not come about, because the yield would be too great and the buyback too powerful. yes, so apple becomes still one more bond equivalent with a better coupon than the bond itself that's tax advantaged. without new products what you have is a company that's not

much different in their eyes than something as prosaic as kimberly-clark or pepsico or even mcdonald's. they're all innovators too and they're all marching around the world with new products and winning everywhere they seem to go with good balance sheet, good yield. these companies have the secret sauce which is expanding gross margins and higher earnings. and as lacking as mcdonald's might be, they are a technical marvel in their own ability to deliver, well, what i had this morning on the set of "squawk on the street." a healthy egg mcmuffin with much less cholesterol because it was made with egg whites. don't laugh! don't laugh. you have to understand what the stock market really wants right now. it wants consistent, higher earnings with a consistent increase in dividend. apple gives you only the latter, not the former. the market wants visible innovation that can move the needle. apple does not have that yet, even as it says it might, but at kimberly, yes, the innovation is moving the needle in china. a pepsico?

yes, it's taking share in india with innovation. now, the market wants a number boost that comes from some organic source, and not just a buyback, and apple doesn't give that to you right now either. what it gives you is a more friendly, more shareholder-friendly company than wall street thought, with numbers that aren't as horrid as what wall street expected. and that's not a good enough for -- that's not just good enough for now. it just isn't. now, it's hated, but the stock isn't hated enough to have a netflix reaction, one of those plus-40 pointers because netflix was supposed to fail miserably and instead added two million subscribers. i personally like the buyback and dividend. my charitable trust owns apple. and on a day when twitter is hacked with a fake story about president obama being hurt, a fake story -- a fake story, and an attack on the white house, a fake story, i know that apple will be a good stock to bid for when the whole market gets hit as it did for one instant on a fake story. while i'm on that topic, please

remember to use stop limit orders, not stop loss orders, because you will end up selling your stock on the fake story at the low of the day. here's the bottom line. it's one thing to bounce because things aren't as miserable as we thought, and because the stock has a safety net. however, if you want rising earnings, rising margins and rising dividends, yes, you might as well buy pepsico. oh, boy. or mcdonald's. john scully, pepsico, on weakness. they have what the market wants, and until apple unveils its omg products, it will not return to its glory days any time soon. "mad money" and its gorgeous new set will be right back. coming up, sweet pickle? condiments have been catching the eye of investors since warren buffett's bid for heinz created a big win for shareholders. tonight, cramer's talking shop

with the maker of b&g pickles, cream of wheat and ortega to see if it's time to chow down. and later, tears of joy? from kleenex to cottonelle, kimberly-clark has been cleaning up in 2013. already soaring over 25%. can the household name behind brands like huggies keep you happy? cramer's earnings exclusive with its ceo is just ahead. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

just because the market had a fabulous day today doesn't mean you can afford to stop playing some defense with high-yielding food stocks that can thrive, even when the global economy is in dire straits. take long-time cramer fave b & g

foods, with a record of buying neglected brands from larger players, private equity firms, and bringing them back to life. you might know b & g as pickles. b & g just reported last thursday and the company delivered an excellent quarter with in-line earnings and revenues that came in higher than expected, rising 8.8% year over year. we don't have a lot of companies in the food business that gained like that. meanwhile, the company raise its guidance, earnings before interest, taxes and depreciation and amortization. it jumped from $28 to $30 the next day and continuing to climb, $31.08 and 3.75% yield at these levels. b & g has given you a 186% return since i initially recommended it in october of 2010. the valuation may seem stretched with the stock trading at 19 times earnings.

however, every time these food stocks seem too expensive to own, they seem to go higher anyway. let's check in with the president and ceo of b & g foods and find out more about the quarter and where his company is headed. mr. winner, congratulations, it's a great quarter. i've got a new thesis for you. >> okay. >> i'm reading your conference call and it's really terrific. you talk about how you bought these new snack foods, and that they had taken away the natural food -- not a claim, but a truth. >> right. >> i also know that this maple -- this name, maple grove farms is doing one of the best. is it possible that we have both a return to the natural and cream of wheat very good, and a kind of sense that maybe your food company is at a very interesting cusp where you're like the potential natural food snack company. >> well, we're certainly working very hard to make all of our foods natural wherever we can. and, you know, so we're reintroducing the claim on these products, reformulating them to

make them all natural, and changing a lot of products, taking high fructose corn syrup out of products and things like that. that's a big consumer concern these days. so, yeah, we're trying to do that. >> and isn't that true -- >> on the forefront, i think it's a broad effort. >> every time you do it seems like sales go up. >> the consumer wants that, so the consumer is voting that, yes, please give us natural foods. >> also, you saw some acceleration in cream of wheat. you mentioned kroger. so just explain to people how it works. a certain supermarket chooses to highlight you or you do trade? >> no, in this case, they do what's called category reviews, where they look at the hot cereal category and decide what are we going to change and things like that. kroger had not done a review for several years, so we had some great new products like the cinnabon instant cream of wheat we hadn't been able to get into kroger for the last couple years. so when they do a category review, it's easy, you go here's our success stories since you did the last category review.

this is what you need to put into the section, and we managed to get them in. >> well, i know they're being very aggressive and have been fabulous to anyone they do like. >> kroger is a good chain. >> now, why is -- why are some -- why is this not doing as well as it should? >> it actually is doing very well. you know, the loss we saw this quarter was all about some rotations, in and outs that they do with club stores. the base business here in supermarkets and things like that is doing very well. so it was a one-time thing with some club rotations. >> you mean they decided to favor a mccormick product instead of you or something? >> well, clubs -- several of the club chains are all about -- they like to say -- we want it to be a treasure hunt. so even when they do something this year that's very successful, that doesn't mean they're going to do it next year. they want their consumer to go in and be surprised sometimes that, oh, look what's here today. >> we talked to former ceo jim sinegal, and he said, listen, it's the pants that bring them in.

then they spend on other things. how about the end of trade down, hearing that people are going back to branded. >> i think they're going back to brands because, first off, the brands are being more aggressive about promoting items where it's appropriate and things like that. that's one of the things we talked about on the call, was doing more promotions. and i think, you know, as people start to feel better, they're going to treat themselves more or return a little bit more to quality where they perceive there is a quality difference. so brands prosper in better times. >> one of the things that you talked about, we don't have it here, unfortunately, is the addition of the pet static guard. can you give us some figures how that's starting to work and where that's being sold, different channels? >> just going out into distribution, but we have already attended a couple pet shows, oriented towards those kind of things, and, you know, one of the wonderful things is pet owners will buy anything for their pets. and is this a really great application for it. really helps you get rid of the pet hair if your dog or cat sheds a lot, makes it very easy to remove the pet hair from

furniture, clothes, things like that. so we're excited about it. it's going to be interesting to see how it does. >> my old white-haired cat tequila was just a pain in the butt. somebody else is taking care of her. when i look at the way that brands are sold and your company, i expect the steadiest growth. you had a kind of off quarter, which is something -- the previous quarter, the stock traded down. aberration? you mentioned sandy? is it really -- >> well, really, we didn't think we had a bad quarter. >> right. >> we delivered almost 16% increase in sales. 20% ebitda increase, so we didn't think that was a very bad quarter. what happened in my mind, the analysts got ahead of themselves. we had increased guidance quarter after quarter. the analysts kept rolling forward, and we delivered what we said we would deliver. we hit our guidance on ebitda right at the midpoint of the guidance. so we didn't consider that a bad quarter. >> one last question. you're now back in shape in

terms of your balance sheet to do another deal. but i have recently met with this outfit, pinnacle foods. they have a lot of brands that are competitive with you. one is, would you ever -- would they ever buy you, and two, are they going to compete directly with you for the next acquisition? >> would they buy us? that's for them to decide. they certainly could if they wanted to, i guess, but i don't think we're going to be head-to-head on a lot of acquisitions. they're a much larger company than we are. they're about four times as large as we are. so the kind of $20 million acquisition that might be interesting to us probably is not that interesting to a pinnacle. that doesn't mean it won't happen. they're going to do what they're going to do. but typically, you know, we buy things under $100 million in sales. they need to have a meaningful impact. they need over $100 million in sales. so we may intersect, we may not. >> okay, excellent. david winter, one of our long-time favorites. total delivery.

i like these companies with good yield, where the dividend goes up, where they do consistent earnings, where the balance sheet gets better and they're ready for the next move. that's b & g foods. stay with cramer. coming up, tears of joy? from kleenex to cottonelle, kimberly-clark has been cleaning up in 2013, already soaring over 25%. can the household name behind brands like huggies keep you happy? cramer's earnings exclusive with its ceo is just ahead.

if you want to know what's working in this market, not only in good days like today but on bad days too, then take a look at kimberly-clark, symbol kmb. this giant consumer packaged goods play, the maker of huggies diapers, depends and baby wipes to kleenex tissues, almost all of the new products here, including, of course, the all-important "mad money" kleenex, has rallied 25% since the beginning of the year. kimberly-clark now sells for 19 times earnings, but every single time i thought about backing away from this stock because of its valuation, the darn thing has just kept going higher and here's the reason. kimberly-clark is an incredibly well-run company that's in the sweet spot of what this market is looking for right now. remember, the stocks that are consistently working in this environment belong to companies that benefit from moderating commodity costs and can continue to raise or at least maintain prices on their customers. meanwhile, the company is doing very well.

kimberly-clark just reported on friday and they delivered a three cent earnings beat on $1.33 basis courtesy of solid organic sales, terrific growth and improving margins. plus the company also raised its guidance for the full year and on top of that, kimberly-clark pays a healthy dividend which yields 3%, and they have been a serial increaser. can this stock keep outperforming like it's been doing despite the fact that many analysts don't think it can? let's talk to tom faulk chairman and ceo to hear more about the quarter and what comes next. mr. faulk, welcome to "mad money." >> boo-yah, jim. how is it going? >> going really well. thank you, tom. great to have you on the show. >> jim, let me tell you, your set has never looked better. you've got the finest products in the world there, and we hope you love the "mad money" kleenex. we made it just especially for you. but we want you to know, you and all your friends can make their own customized kleenex boxes. just go out to mykleenex.com and make your own. it will be fantastic. >> this is the kind of thing

that mark benioff over at sales forces tells me that kimberly-clark is doing that nobody else is doing. and it's what i want to start talking about. i'm always trying to explain to people that the real tech companies in this world aren't what they used to be. the personal computer companies. they're what you did. how many of these new products are literally made by -- we have a lot out here, by technology that didn't exist before and how much share are you taking and business doing because of innovation? >> you know, jim, innovation is what it's all about. i was just in china and korea, we've got a new global innovation center in korea where we've got people from all over the world inventing new products, and it takes a lot of technology to make a diaper that doesn't leak or to make a facial tissue that's really soft. and we're also trying to be really innovative in how we market. so new digital marketing techniques, whether it's facebook apps or things we can do to communicate with moms digitally around the world is really driving our business today. >> and one of the things, tom, in your conference call, you said, look, we have premium diaper innovation launching in

the second quarter. what i felt when i read that, look, whatever you see in front of you is going to get better, and every time you seem to innovate, you seem to make a step function in sales. >> well, you know, jim, one of the great things about our business, there are babies being born every day, and the universal insight around the world is that moms want the very best product for their baby. and so you have got to continually be innovating because there -- you've got babies leaving the category, you've got babies coming into the category every day. and so we know, we've got to get out of bed every morning, come in to work, thinking about making a better product to take care of consumers and customers. >> i love what you talk about, the emperor baby in china. do you see an increase finally in the birth rate in the united states now that things have gotten better, and that you can get your own house? >> i think finally. we think it bottomed out last year, and we're starting to see slow upward progress this year. and i think that that will be a benefit for our business over the medium term but i think it

will also be good for the u.s. economy, because i think parents in the u.s. are the same way. as you said, they want a home, they want all those other things that go with providing the best for their families. >> tom, i want to talk about something your company does better than any other company in your industry. you have what i regard as being some sort of social compact with your shareholders, and included in that social compact is the desire to raise the dividend every year, is to have a real buyback, and i'm looking at the numbers. you've been -- 50 -- more than 50 million shares bought in the last few years. and is it something in the water? why is it that you recognize that the social compact transcends what the analysts say and makes it so people say you know what, this is a stock i can own and check in with, but own for the long haul? >> well, you know, jim, there is a very simple truth that someone told me a long time ago, that's true more today than ever. our shareholders own the company! it's their company. it's their money. so before we reinvested in the business, we ought to be able to

do better with it than they could do. and if we generate extra cash we don't need to run the business, we give it back to our shareholders. so we've increased the dividend every year for 40 years in a row. we buy back shares and have had a meaningful reduction in our share count. and i just think it's our shareholders' money, they have the first call on it and we've got to think that way every day. and if we run the business that way, it's going to be good for the company and good for our shareholders over the long term. >> but tom, you're tough on yourself. there was a moment in the call where you say -- start with health care. we were surprised and disappointed. in fact, we started out the year with health care a little bit of a flu pandemic and you went on to be not happy. so there are things you think can be improved. >> well, you know, that's right, jim. i think good leaders in every business around the world, they quickly celebrate the success and then they start to ask what else can we do better to make it even better next time around. and our health care business didn't perform as well as we would like. and one of the things we're trying to figure out, quite frankly, is we're actually seeing surgeries down. they were down about 4% in the

first quarter. they were down 1% in the fourth quarter. they were down 4% last year in the third quarter. and so we haven't quite figured that out. we don't think people are getting healthier, but they're not being admitted to acute care hospitals at the same rate. and you have seen that in some weakness and other health care companies have reported so far this quarter. so that's a little bit of a hole we've got to dig out to hit our numbers in health care over the balance of the year. >> yeah, i liked your honesty in that. you basically said, listen, we don't really understand. and some other companies are trying to figure it out. but even the companies in the industry don't know. i mean, full time in the industry. now, you called out a couple countries as being really amazing, and i know you have kimberly-clark to mexico. but it seems like that mexico has become the next great growth area even though it's always been pretty good for you guys. >> we've got a great business in mexico and it's run by a phenomenal management team, and it's been great for a long, long time. my whole career that's been a star performer at kimberly-clark. we've got some of the highest

market shares in the world in mexico. and boy, if there is a team that ever jumps on a great idea, it's our team in mexico. and i think that economy is really starting to hum and get its act together. they've got good currency position, strong reserves. starting to see decent, predictable, stable growth. just went through a presidential transition last year, went very smooth. starting to enact a lot of reforms. and so, again, i think that economy is poised for a lot of growth in the future. >> at the same time, you had to bite the bullet in central and western europe. you're the only guy on a major consumer packaged goods company that i've seen where you said, listen, we've got to implement changes, we've got to do them right now. the auto companies are trying to figure it out. how tough was it to stop selling diapers in 13 countries and just exit, even though you worked hard to build share in those countries over multiple years? >> well, jim, that's probably one of the toughest calls i've had to make in my career. any time you say we don't think we can compete and win in one of our core businesses in a market, that doesn't feel very good to me. and so honestly, we agonized over that.

i probably took too long to make that decision, to try to give our team every chance to be successful. one of the things i'm pleased about since we made the decision, the team is starting to execute. we saw other businesses start to grow nicely in the first quarter. and the businesses we're going to continue in europe, we have 4% organic growth in the first quarter, which is the first time the businesses have grown in a while. and so i think once we've been able to deal with that tough decision, it's cleared the way for some other things that are more positive in europe. >> tom, i want to congratulate you for doing everything right. you are the company that has made -- the first company i recommended when i was at goldman sachs and you should be the first company i still recommend right now. tom faulk, chairman and ceo of kimberly-clark. great to see you, sir. congratulations on your good success. >> thank you, jim. >> guys, this is the kind of company that i am telling you is working, because management cares about shareholders. kimberly-clark, tom faulk, what can i say? this is exactly what you've got to be in. stay with cramer.

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before we get to the "lightning round," you may have noticed things are looking a little different around here today. our amazing team has been working incredibly hard, giving our set, our home, this sleek, steely face-lift. we've even got special "mad money" walls now that can change color at my command. how about red! how about some blue! and my favorite color, green! see what i mean? not bad, huh? so i want to thank the team here for their amazing work, the incredible job. and while we may have cleaned up a bit, guess what?

i'm still focused on the same thing as always. making you some money! and now, with our beautiful new set, it is time, it is time for the "lightning round" on cramer's "mad money." when i play this sound, the lightning round is over. are you ready, skedaddy? gabriella in new york. gabriella. >> caller: hi, jim, boo-yah! >> boo-yah! >> caller: how are you? >> all right. how about you? >> caller: good. do you like the stock emc? >> very controversial. we sold a little for our charitable trust today. why? because stephanie link feels the tech is still not that good. reports tomorrow. vm ware disappointing tonight. let's see what happens. let's go to ray in south carolina. ray! ray. >> caller: yes, sir. >> you're up. >> caller: oh, well, mr. cramer, we love your show.

>> thank you. >> caller: and we certainly would like to hear about what you think about sdp. >> okay. you've got sandridge, sd, new ceo on twitter @jimcramer i said sd, no thank you. and i'm going to say no thank you to that trust. you need to be in a master limited partnership with growth. let's go to alex in georgia. alex! >> caller: hey, jim. i'm calling about vertex pharmaceuticals. i bought the stock about three weeks ago, partly on your recommendation, went up about 60% last week, and i'm wondering if you think i should take profits now or -- >> i think this stock can go much higher. i said to own vertex and i'm not trading it. i think that vertex has got the breakout drug here, it reminds me of gilead when they bought farmasset, of celgene, of

biogen. don't sell your vertex. it goes higher. let's go to will in virginia. >> caller: hello, jim, boo-yah from central virginia. >> excellent. >> caller: i've got a question for you. you've been talking about airline stocks over the past couple weeks, but i have not heard you talk about jblu, jetblue. >> because it's my least favorite. i like usairways, reported a good number and is merging with amr. that's the one to be in, is us air. i think that delta is good, continental is good, jetblue is good. i'm saying this merger is unbelievable for amr and usair. let's go to reggie in new york. reggie! >> caller: hey, jim. how are you doing? >> all right. how about you? >> caller: pretty good. i just wanted to talk to you about apache. >> man, what a dog that thing has been. i mean, it's just incredible. now that said, i do believe that the assets should go -- 27% of the business is in egypt, and as far as i can tell, that is not a sleep at night situation in

egypt, so i cannot endorse apache with so many great oil companies that are so inexpensive. let's go to aaron in new york. aaron. >> caller: hey, how are you doing, jim? >> real good. how about you? >> caller: good. i wanted to ask you about blk, blackrock. >> yeah, blackrock is fine. here's the problem with blackrock and why my trust decided to take a small profit in it. this stock is up ten or down ten. overall, i think it will go much higher but the up ten, down ten is not right for a charitable trust. but it may be right for someone who doesn't have to worry about the ups and downs on a daily basis. and that, ladies and gentlemen, is the conclusion of the "lightning round"! >> the "lightning round" is >> the "lightning round" is sponsored by td ameritrade. and his new boss told him two things --

oh, man, at last, time for some spring cleaning. we've got a major backlog of homework here on "mad money." we go to villanova april 25th. i like to do my homework. these are stocks you called in, asked me about.

for one reason or another i said i would have to do more research before getting back to you, because i am a man of my word and this is the most interactive show on television, that's what i'm going to do right now. first off, on march 6th, al in pennsylvania called about whiting usa trust two, symbol whiz, w-h-z. this is a fairly recent ipo, came public a little more than a year ago, march of 2012, and it's a statutory trust, not a master limited partnership like many of the other energy trusts we talk about on the show. now this trust was created roughly a year-and-a-half ago by whiting petroleum, a company you know we like because of the bakken, as a dividend vehicle that owns a term net profits interest in many of whiting's long lived oil producing properties in the rocky mountains. the permian basin, gulf coast and mid continent region, gets

90% of the net proceeds and then returns those proceeds to shareholders in the firm of a gigantic distribution. this one yields 19%, so caught everybody's eye. once the underlying assets run out of oil, though, the trust gets terminated. expect that in 2021. that sky-high yield may seem attractive but the payout is hostage to gas prices, makes it volatile, and lately oil has been hammered, hence why the stock is less than 50 cents off its 52-week low, even as it's got a distribution that everyone should love, right, because we all want high yield. my view. hey, look, if you're looking for yield, you want something more consistent, so i think you would be better off with a master limited partnership with growth, not a wasting asset trust. hey, by the way, there is nothing wrong with a kimberly-clark, either. that ain't anything but a wasting asset. all right, next up, on that same day, steven in south carolina, asked me about micros systems, mcrs. hasn't looked at it in ages.

installs and maintains terminals and back office systems for 26,000 hotels and 100,000 restaurants and retailers. basically micros does the front desk terminals and cash registers and software applications to go along with them. i've got to tell you, our viewers are smart. i like this one, especially since the stock sells for just 16 times next year's earning estimates. a nice discount to the company's 18% long-term growth rate. plus, micros could potentially unlock a lot of value by spinning off its hotel solutions business. i've got to tell you, mcrs, that sounds like a total horse sense stock, and i have committed to doing even more work on it because i like it. what else? march 7th, mark in wisconsin wanted some guidance on golar lng, glng, one of the world's largest owners and operators of liquified natural gas tankers. i applaud their progress toward becoming a midstream player in the lng industry. this is green week. lng is cleaner than diesel as

they move upstream via floating natural gas liquification projects. however, right now there is short-term pressure for the tankers, and as long as that pressure lasts, i suggest staying on the sidelines. may be green, but it won't make you green. last but not least, on march 11th, cliff from florida called about western asset mortgage. very hard to understand. wmc. while joe from indiana asked about two harbors, t-w-o, another difficult one. why? these are both mortgage real estate trusts, they're very attractive. western asset mortgage is what's known as a pure agency reit, which means their mortgage backed securities are all guaranteed by government sponsored enterprises like fannie and freddie so there is no credit risk. however, the company plans to have an active portfolio management strategy, which means more risk but also higher yield. two harbors, on the other hand, already has a nonagency component, meaning some mortgage securities are not guaranteed. so it's got both that credit risk and interest rate risk. but balancing these two harbors

also has a seasoned management team. why take the risk with these two when you can own the best of breed mortgage reit? i mentioned annaly mortgages. i like the restructuring, making acquisitions and has historically, even if now the late mike farrell started it, it does not like credit risk. i don't like credit risk either. i just like big dividends. "mad money" is back after the break.

look at netflix run! could there be a more perfect result for this stock which has only six analysts in favor of and 30 against it? a stock that closed up $42.62 today. you wish apple could do that, right? could the stars align more closely for this name which has at its core a group of haters that live to be short the darn thing? not unlike those who shorted amazon in the 100s three years ago. let me explain for those who don't understand the way the stock market works.

netflix exists because people want to watch the way they want to. netflix succeeds because it's super cheap versus cable. netflix thrives because of the change of the nature of programming and how much more people like these long-form arc cable shows than traditional network shows, except for a couple enduring comedies and longer running dramas. but because netflix stumbled not that long ago, it became hated by the people who didn't either understand the story or by short sellers who dug in their heels rather than declaring victory, and they had victory in their grasp. they should have gone long and covered their short. in short, netflix went from being loved to being hated faster than i had ever seen a stock travel that distance, except for the speed with which it is now loved again by shareholders, and i bet the analysts will go from hating it back to loving it even more rapidly as it rallies. hence, how it could have such a huge move today. let's go over what netflix did right that wall street didn't expect.

first, when the company screwed up and created that nutty plan that forced subscribers into adopting their online platform, both the people who owned the stock and the analysts figured this was the end of netflix. they thought users would be so angry that they would switch to amazon or itunes. what people didn't understand, though, was that with the web adapting so fast to high speed, along with the birth of the tablet about the same time, netflix was simply too cool a product not to have. and when you compare it to cable, again, bargain, especially because other than sports who the heck cares when you watch something? second, even though management's mea culpa was dissed by wall street, the customers loved it. they didn't abandon it, the customers came back. that wasn't in the shorts playbook. third, while netflix was spending far more money than it made, it was thought to be incapable of raising the cash it needed to survive or making big deals with big customers. like, well, providers like disney.

but it turns out these are all more bountiful times than the analysts realize. fourth, both analysts and hedge funds are simply not believers in the idea that content can ever move the needle. they forget that hbo, the model they love, grew on the backs of the sopranos, the same way "house of cards" spurred netflix. now hbo is being left in the dust behind netflix's accelerating growth. fifth, the analysts didn't see the symbiotic relationship between the creators of the new kinds of television, the profit centered television, the long form arc series where you can't just crack into it and the netflix way of viewing. with these shows, you need to start from the beginnings and netflix has everything from "breaking bad" and "walking dead" to "mad men," you've got to binge the first three years to get to the fourth. it hurts. look, it doesn't hurt the programming crosses all ages, okay, and can be watched in binge fashion. son, daughter, parent,

grandparent, the same way people watched "house of cards" from the day of its release. people love bingeing. finally, the rich people or analysts don't understand the new frugality. kids don't want to pay either for cable or amazon or itunes. for them, netflix is a great deal. all those factors in short, all favor the netflix bulls and eviscerate the bears at precisely the moment when the bears were supposed to win. it's a textbook failure of typical security analysis and it's all the handiwork of a brilliant executive reed hastings. one more thing. maybe now as a $12 billion company, netflix won't last be seen as a potential growth engine acquisition for either microsoft or apple. although the former is too go it alone and the latter, well, they still think they're doing fabulously. their loss, netflix's shareholders gain.

let's go to kieran in florida. kiran. >> caller: boo-yah, jim cramer, down here in sunny florida. >> i was just there, sunshine. what's going on? >> caller: listen. a while ago, i bought aol, okay, and over the course -- i held on to it for a long time and it split to aol, time warner, time warner cable, okay? i sold off the aol, i still have the time warner and time warner cable. it's doing good, it's in the green. what do you think, should i hold it? >> hold them both! hold them both! and by the way, time warner is run by jeff buchas, i invite you on the show. you called me a great american but i believe time warner is going much higher and i like the cable business very much. let's stick with florida where i just came from and go to bob in florida. bob! >> caller: hey, jim. first of all, big boo-yah from sunny south florida. >> love it. >> caller: calling about michael kors. it's down 20% since its last quarterly report but bounced 4% today after coach reported better than expected earnings and strong sales in china. and kors has exposure to china, same kind of high-end product line. i wonder what you think this coach report might indicate for kors.

>> to me, coach, i was saying at jim cramer on twitter that coach is in large part a function of the new shoes. they got a new look. kors is good, but the market wants no misses, and a lot of people felt that kors was just okay, and it is still trying to digest that gigantic secondary offering. i think kors is fine, though. all right, now grab some popcorn. netflix, yes, netflix, could be a blockbuster for shareholders after all. if only microsoft or apple understood it's time that they spend the $16 billion as opposed to the $9 billion when i first suggested it, to get netflix. otherwise reed hastings is going to take the stock up much higher himself. stick with cramer. switch your car insurance to

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